1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Wewaii [24]
3 years ago
13

Alpine West, Inc., operates a downhill ski area near Lake Tahoe, California. An all-day, adult ticket can be purchased for $80.

Adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from December 1 through April 30. The season pass is nontransferable, and the $460 price is non refundable. Alpine expects its season pass holders to use their passes equally throughout the season. The company's fiscal year ends on December 31. On November 6, 2013, Jake Lawson purchased a season ticket.
Required:
a. When should Ski West recognize revenue from the sale of its season passes?
b. Prepare the appropriate journal entries that Ski West would record on November 6 and December 31.
c. What will be included in the Ski West 2016 income statement and balance sheet related to the sale of the season pass to Jake Lawson?
Business
1 answer:
telo118 [61]3 years ago
7 0

Answer:

Alpine West, Inc.

a. When Alpine West, Inc. should recognize revenue from the sale of its season passes evenly over five months from December to April when the passes are put to use.

b. General Journal for

November 6:

Debit Cash Account $460

Credit Deferred Revenue $460

To record the purchase of a season ticket or pass by Jake Lawson.

December 31:

Debit Deferred Revenue $92

Credit Service Revenue $92

To record the ski service consumed by Jake Lawson for December.

c. In Alpine West, Inc.'s income statement and balance for 2013, the following amounts will be included in relation to the sale of the season pass to Jake Lawson:

Income Statement: Service Revenue $92 and related costs.

Balance Sheet: Deferred Revenue (Liabilities side) $368 ($460 - 92).

Explanation:

Alpine West, Inc. will make the above entries in accordance with the accrual concept and matching principle of generally accepted accounting principles.  These require that revenue, income, and expenses related to a period must be accrued for that period whether actually received / paid or not.  It also means that the costs incurred for any revenue generated must be matched to the revenue and vice versa for that particular period.

You might be interested in
The Association of Southeast Asian Nations (ASEAN) effectively united Singapore, Britain, and Japan into one market.
Nezavi [6.7K]

Answer:

False

Explanation:

The Association of Southeast Asian Nations (ASEAN) is a regional economic block made up of 11 southeast Asian countries. The block's primary objectives are to promote economic, cultural, and social integration among the member countries. Members of ASEAN are  Brunei, Burma (Myanmar), Cambodia, Timor-Leste, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam.

Singapore, Britain, and Japan are not members of ASEAN.   ASEAN is a regional body and Britain is not is Asian.

3 0
2 years ago
Which example describes sharing risk?
alexandr1967 [171]

Answer:

getting car insurance is the correct answer.

Explanation:

4 0
3 years ago
OS Environmental provides cost-effective solutions for managing regulatory requirements and environmental needs specific to the
Marat540 [252]

Answer:

See attached file

Explanation:

3 0
3 years ago
If the nominal interest rate is 18 percent and the real interest rate is 8 percent, the inflation rate is
Kamila [148]

Based on the nominal interest rate and the real interest rate, the inflation rate must be 10%.

<h3>What is the inflation rate?</h3>

The inflation rate is the difference between the nominal rate and the real interest rate.

It can be found as:

= Nominal rate - Real interest rate

Solving gives:

= 18% - 8%

= 10%

In conclusion, the inflation rate is 10%.

Find out more on inflation rates at brainly.com/question/25877453.

6 0
2 years ago
On page 23 of the textbook, the discussion of Cost Management Systems suggest that currently the focus is on proactive versus re
Elina [12.6K]

Answer:

1. <u>Reactive management</u> as the name implies refers to management having an approach of acting only after a problem has occurred while

<u> Proactive management</u> is preventive method of management that prevents problems from happening by acting in advance to avoid their occurrence.

Explanation:

1.

<u>Reactive management</u> as the name implies refers to management having an approach of acting only after a problem has occurred while

<u>Proactive management</u> is preventive method of management that prevents problems from happening by acting in advance to avoid their occurrence.

Applying proactive management to McDonalds, management will be open to new ideas and quickly adapt, from customer feedback and make changes to their menu but in reactive management it will refuse to do so until the customers begin to complain or disappear then it will take measures to repair the damage of lost customers. At what time, making changes to the menu may be coming too late.

2

Activity accounting does not only report financial information but other qualitative information based on the activities of people and departments which is why it is also called responsibility accounting.

Such being applied to Mcdonalds will consider number of clients served per staff or department, number of customer complaints per period etc

5 0
3 years ago
Other questions:
  • Nintendo chose a ___________ approach to pricing for a new game console because they felt the market for this product was price
    10·2 answers
  • Merchant Company had the following foreign currency transactions: On November 1, 20X6, Merchant sold goods to a company located
    11·1 answer
  • Spencer Co. has a $280 petty cash fund. At the end of the first month the accumulated receipts represent $51 for delivery expens
    7·1 answer
  • A mining company declared a liquidating dividend. The journal entry to record the declaration must include a debit to1. Retained
    7·1 answer
  • Golden Enterprises started the year with the following: Assets $107,000; Liabilities $37,000; Common Stock $67,000; Retained Ear
    13·1 answer
  • When Ford discovered the fault with its Pinto model that caused the car to explode easily when hit from the rear, what action sh
    11·1 answer
  • The Miller family owns and operates an interior decorating business. Henry installs hardwood floors and chair rails; Chloe reuph
    5·1 answer
  • Which of the following statements regarding personal and/or rental use of a home is false? Multiple Choice A day for which a tax
    5·1 answer
  • One reason demographic variables are the most popular bases for segmenting customer groups is because they ________. Group of an
    15·1 answer
  • The laissez faire model is inspired by the work of which economic philosopher?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!